GRAYSCALE FUNDS TRUST NOTES TO FINANCIAL STATEMENTS December 31, 2025 (Continued)
As of December 31, 2025, the Funds had the following capital loss carryovers with no expiration:
Bitcoin Covered Call ETF
Bitcoin Premium Income ETF
Ethereum Covered Call ETF
Bitcoin Adopters ETF
Bitcoin Miners ETF
Short-Term Capital Loss Carryover . . . . . Long-Term Capital Loss Carryover . . . . . Total Capital Loss Carryover . . . . . . . . . .
$224,528 $
— $1,681,562 $
— $
—
—
— — — —
$224,528 $
— $1,681,562 $
— $
—
A regulated investment company may elect for any taxable year to treat any portion of any qualified late year loss as arising on the first day of the next taxable year. Qualified late year losses are certain capital and ordinary losses which occur during the portion of the Fund’s taxable year subsequent to October 31 and December 31, respectively. As of December 31, 2025, the following Funds deferred, on a tax basis, losses of:
Bitcoin Adopters ETF
Bitcoin Covered Call ETF
Bitcoin Premium Income ETF
Ethereum Covered Call ETF
Bitcoin Miners ETF
LateYearLosses.................... Post-October Capital Losses. . . . . . . . . . .
$ 2,429 $
— $ 1,556 $
— $
—
— — — Additionally, GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. Permanent differences primarily relate to net operating losses, in-kind redemption transactions, and income from the Subsidiaries. For the period ended December 31, 2025, the following table shows the reclassifications made: — —
Bitcoin Adopters ETF
Bitcoin Covered Call ETF
Bitcoin Premium Income ETF
Ethereum Covered Call ETF
Bitcoin Miners ETF
Total distributable earnings . . . . . . . . . . . . $(698,744) $ 6,618,210 $(1,329,242) $ 554,411 $ 1,906,784 Paid In Capital. . . . . . . . . . . . . . . . . . . . . . $ 698,744 $(6,618,210) $ 1,329,242 $(554,411) $(1,906,784) NOTE 7 – SHARE TRANSACTIONS Shares of the Funds are listed and traded on the New York Stock Exchange Arca, Inc. (“NYSE Arca”). Market prices for the shares may be different from their NAV. The Funds issue and redeem shares on a continuous basis at NAV generally in large blocks of shares, called “Creation Units.” Creation Units are issued and redeemed principally in-kind for securities included in a specified universe. Once created, shares generally trade in the secondary market at market prices that change throughout the day. Except when aggregated in Creation Units, shares are not redeemable securities of the Funds. Creation Units may only be purchased or redeemed by certain financial institutions (“Authorized Participants”). An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors do not qualify as Authorized Participants nor have the resources to buy and sell whole Creation Units. Therefore, they are unable to purchase or redeem shares directly from the Funds. Rather, most retail investors may purchase shares in the secondary market with the assistance of a broker and are subject to customary brokerage commissions or fees. The Funds currently offer one class of shares, which has no front-end sales load, no deferred sales charge, and no redemption fee. A fixed transaction fee is imposed for the transfer and other transaction costs associated with the creation or redemption of Creation Units. The standard fixed transaction fee for the Funds is $300, payable to the Custodian. The fixed transaction fee may be waived on certain orders if the Funds’ Custodian has determined to waive some or all of the costs associated with the order or another party, such as the Adviser, has agreed to pay such fee. In addition, a variable fee, payable to the Funds, may be charged on all cash transactions or substitutes for Creation Units of up to a maximum of 2% as a percentage of the value of the Creation Units subject to the transaction. Variable fees
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